Economic order quantity model with green technology approach considering time dependent demand in fuzzy environment

Abstract

In this study, we consider the problem of determining the effect of carbon tax and green technologies over infinite planning horizon. We have developed two economic order quantity models considering constant demand and exponential time dependent demand. Carbon emissions may also occur from storing undelivered or unsold products due to some factors. Investment in green technology is also considered. In this article, we fuzzify the inventory parameters such as demand, ordering cost, holding cost and the amount of carbon emitted when storing the products. To incorporate uncertainty, pentagonal fuzzy numbers are utilized to fuzzify the parameters of the inventory system. The graded mean integration method is used for defuzzification. The optimal values of the order quantity, cycle time and optimal inventory cost in both crisp and fuzzy sense is determined for both the models. Numerical illustrations are given to demonstrate the solution procedure and the sensitivity of various parameters are analysed.